Simple/Compound Interest

The simple interest formula is I=Prt.  The P represents the principle.  The principle is ___________________. 

• the amount of money borrowed or deposited
• the amount taxed
• the percent interest for this year
• the amount the bank owes you for being a customer at their bank

Tags

CCSS.7.RP.A.3

If you are calculating the simple interest and you are given the time in months. How can you find the time in years?

• divide the months by 12

• multiply 12 times the months

• add the years to the formula

• look at the calendar

What is the formula for simple interest?

• A=P(1+r)^t
• I=Prt
• I=P(1+r)t
• A=Prt

Tags

CCSS.8.EE.C.7B

Ann puts $3080 in a bank account earning 4.5% interest. How much will she earn in interest over 3 years?

• $41.50

• $51.80

• $415.80

• $515.80

How is TIME calculated in the formula:

I= Prt ?

• It must be in months

• It must be in years

• it is not calculated

• It goes on forever

Find the simple interest:

Principal: $6,825

Interest Rate: 5.2%

Time: 6 months

• $15

• $17.45

• $177.45

• $1777.45

If Jarvis borrowed $675 at a simple interest rate of 10%, how much will he have to repay back at the end of six years?

• $504

• $1048

• $405

• $1080

When Lilly was born, her parents put $8,000 into a college fund account that earned 9% simple interest. Find the amount of interest earned after 9 years.

• $720

• $14,480

• $6,480

• $12,960

Caiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% in simple interest. What will be his balance after 8 years?

• $270.75

• $144.40

• $619.40

• $1,444.00

Principal = $500

Interest rate =5%

Time = 5 years

What is the interest earned?

• $95

• $105

• $125

• $135